Transfer of shares

[edmadd11]

Hi

Back in June of last year, I agreed to join a company in exchange for a 1/3 equity share. This agreement to date has been a gentlemans agreement with a view to formalising it when the company had the cash to process the transfer. The equity would take the form of a transfer from an existing director of 4000 shares (originally issued at £1 each).

At the time I agreed to join, the company was weeks away from going under and therefore almost valueless. The company is now starting to do ok so we are looking to complete the transfer.

Does anyone know the best method to do this which a) doesnt incur tax on either myself or the transferring director and b) doesnt require me paying £1 per share?

Thanks in advance for your help

Ed

[section 44]

Does anyone know the best method to do this which a) doesnt incur tax on either myself or the transferring director and b) doesnt require me paying £1 per share?

Pay the unrestricted market value for the shares (the only way).

[King_Maker]

You may be able to argue that the beneficial interest in the shares was transferred to you in June 2010 - for a nominal sum presumably. It would be helpful if the company's accountant could provide written confirmation of their low value. Your co-director being Trustee for those 4000 shares. So long as the shares were worth less than £10,100, and he had no other disposals in 2010-11, he should have no CGT liability.

The share register can be updated in due course with the relevant Stock Transfer form

[Incredulum]

I'm with Kingmaker.

Although I don't understand why the company required cash in order for one director to transfer valueless shares to you.